Coinseed Shuts Down Following NYC Attorney's Lawsuit

Cryptocurrency trading app to shut down after prosecutor Letitia James chargedCoinseed in scam.

In February of this year, James stated thatCoinseed executives defrauded investors for more than $ 1 million and thus violated US law. In May, prosecutors filed a court order to freeze Coinseed's activity and suspend all operations. The court approved the petition this Monday.

The company's CEO said he was “extremely sorry to close the business.” He does not admit guilt and says that the only mistake – This is the location of Coinseed's headquarters in the United States.

Coinseed was founded in 2017.In 2018, the project raised $ 1 million during the ICO. According to the indictment, Coinseed conducted an unregistered securities sale by issuing a CSD token without proper registration in New York State.

Laetitia James also states that she receivedover 170 complaints from investors who were worried about the safety of their funds on Coinseed. She also accuses the company of doing business without a “broker-dealer” license.

The Coinseed CEO said the allegations"Ridiculous, since no other exchange has such a license." Angry with the prosecutor, he created his own FLJ (Fuck Letita James) token. According to him, he will soon list this token for sale on various DeFi sites.

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Based on materialswww.theblockcrypto.com